According to Zillow, 30-year fixed mortgage rates are currently at 3.18 percent, down 16 basis points from 3.34 percent at this same time last week. This represents the lowest rate reported by Zillow since beginning in 2008.
After peaking at 3.35 percent on Wednesday, the 30-year fixed mortgage rate dropped to 3.28 percent and hovered between 3.32 and 3.35 percent over the weekend, dropping to the current rate this morning.
"Mortgage rates saw a significant drop this week, reaching an all-time low, as the market continued to digest the significant and sustained impact of the Federal Reserve's decision to offer a new round of stimulus which unlike prior stimulus plans, does not carry a preset expiration date. The Federal Reserve's commitment to keep the federal funds rate close to zero into the middle of 2015 also affected rates," said Erin Lantz, director of Zillow Mortgage Marketplace.
"This week, we expect rates to rise slightly as lender capacity begins to fill up from a new influx of borrowers interested in refinancing at these historically low rates," added Lantz.
Zillow's real-time mortgage rates are based on thousands of custom mortgage quotes submitted daily to anonymous borrowers on the Zillow Mortgage Marketplace site, and reflect the most recent changes in the market. These are not marketing rates, or a weekly survey.
The rate for a 15-year fixed home loan is currently 2.59 percent, while the rate for a 5-1 adjustable-rate mortgage (ARM) is 2.43 percent.